Dramatically Improve Your Home Value Without Spending a Dime

A CASE STUDY: CARLTON AVE NE, GRAND RAPIDS, MI

In late August 2019 we received a phone call from a past client stating that someone close to her, who lives in Chicago, had unexpectedly inherited a home here in Grand Rapids. Santiago immediately reached out to this person to inquire about what we could do to help. The new homeowner explained the situation stating that they did not want to keep the home and they preferred to put it on the market.

That afternoon Santiago visited the home. It was in a run-down condition as the previous owner was in ailing health and simply unable to maintain the home. However, despite the aesthetic shortcomings, the home had good sturdy bones and the owner had done all of the critical things like adding gutters, updating the kitchen counters, and maintaining the roof.

Upon noticing the home’s potential, Santiago returned to the office and ran a comparative analysis looking at the home in three different scenarios. Here is what each scenario entailed:

Do Nothing and List As-Is | Potential Value: $122k
In this scenario Santiago Properties would simply put the home on the market sans upgrades. One thing we did not mention above is that this was a heavily smoked in home. Nationally, a heavily smoked in house depreciates home values by an immediate 21%, which would put the house at roughly $113,600, but because of how low inventory was at the time (and still is), Santiago suggested the home could still be sold as-is for roughly $120k.
Light Upgrades | Total Cost: $10k | Potential Value: $155k
In this scenario Santiago Properties would handle coordination of the following:
- Smoke Remediation | Cost $8,500
  Remove and replace all carpet and window treatments in the house including basement. All walls, doors, cabinets, flooring, and windows would have to get de-stained and cleaned. Walls, trim, doors, etc. would get painted with a special stain-blocking primer and then re-painted. The entire HVAC system would have to get neutralized and cleaned. Lastly, every light fixture, outlet, and light switch would have to get replaced.
- Removal of Belongings | Cost $1,500
Complete Renovation | Total Cost: $45k | Potential Value: $205k
In this scenario Santiago Properties would handle coordination of everything listed in Scenario 2, plus the following (renovation would be mid-level to high-end):
- Kitchen renovation
- Basement renovation
- Basement bathroom renovation including adding a shower
- All new flooring including basement and refinishing wood floors on main level
- New paint throughout
- New fixtures throughout

How our Concierge Program Works

If the seller decides to go with Scenario 2 or 3, our team would manage the project and cover all costs up front including: coordinating with contractors, choosing appropriate paint colors, finishes, fixtures, etc. In other words, once we have determined the necessary enhancements and a desired budget and timeline is set in place, Santiago Properties will cover all up front costs, collecting payment for the services rendered at the time of the property's closing. Essentially this is like having a mini, interest free loan that is paid back only once the home is sold. This allows the seller to make upgrades and get more value out of their home at no additional cost to them. You can learn more about our Concierge Services here.

How did the story end?

After thoroughly reviewing the outcomes, the seller decided to go with Scenario 2 as they wanted to keep the timeline short. Within a 30-Day time span, our team coordinated with contractors to complete the improvements. Throughout those 30 days the comps showed home values in this neighborhood had increased even further. The home sold for $170,000.